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Nexant Parabolic Trough Solar Power Plant Systems Analysis 2005

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Nexant Parabolic Trough Solar Power Plant Systems Analysis 2005 ( nexant-parabolic-trough-solar-power-plant-systems-analysis-2 )

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4.2 Multiple Plants at a Common Site The Federal Power Commission, now the Department of Energy, maintains a database of performance and cost information on power plants constructed in the United States. Data on 175 conventional gas fired, combustion turbine, and combined cycle plants, were reviewed for the study. The plants, constructed between 1950 and 1980, included both single and multiple units at a total of 55 sites in the South and the Southwest. Of the 55 sites, at least 46 had more than on unit at the same site. After adjusting the costs to a common price level, the unit costs, in $/kWe, for subsequent units were compared with the unit costs for the initial units. The results for 80 plants, in which the subsequent unit was the same capacity as the initial unit, are summarized in Table 4. As shown, the average unit cost for the subsequent units was about 13 percent less than the cost of the initial unit. The statistics indicate there is a meaningful cost savings to locating multiple plants at a common site. The factors which might contribute to the reduction of costs include the following: • Procurement of multiple quantities, capturing the discounts available from the purchase of two or more identical components, such as the turbine-generator, condenser, steam generator, and main transformer. Unfortunately, traditional procurement processes of bidding or negotiating a lump sum price for equipment make it impossible to accurately measure the effect of volume purchasing. Nonetheless, an examination of purchase orders for large components indicates that 5 to 10 percent of the order is tied to delivery of certified vendor prints. As such, it would be reasonable to assume that some fraction of this cost could be avoided in the purchase of multiple quantities. • Reusing the final design engineering, the equipment specifications, and the procurement packages from the first plant on each of the subsequent plants. Two important qualifications should be placed on the estimated savings of 13 percent for subsequent units. First, details of the capital costs for each plant in the DOE database are not maintained. As such, it is not possible to determine what, if any, pre-investments in the subsequent plant were included with the initial plant. Such pre-investments might include the land for the second plant, soils analyses, geologic studies, site preparation, fences, raw water supplies, operator control room, warehouse facilities, evaporation pond, and grid connections. An intuitive estimate from a Bechtel cost engineer suggests that one-third of the savings in the subsequent plants are due to the pre-investment in the first plant. Second, the projects listed in Table 3 go back several years. As such, the plants are likely owned and financed by the local utility. This arrangement is somewhat different than today, in which many projects are owned and financed privately, and in which the only source of revenue is energy sales to the local utility. In general, the financial resources of a utility are greater than a private source. Further, a utility may be willing - 13 - Task 3 Multiple Plants at a Common Site

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